MX Oil PLC Announces Investment In Aje Field Offshore Nigeria

MX Oil plc, the AIM listed has agreed to invest in an indirect, non-operated 5% revenue interest in the Oil Mining License (OML) 113, offshore Nigeria which includes the Aje Field which is an oil, condensate and liquids rich gas discoveries and it’s a prolific hydrocarbon jurisdiction with initial targeted peak production of 11,000 bopd to 19,000 bopd in phase 2. Four wells have previously been drilled on Aje and two have been production flow tested.

In addition, MX Oil announces the issue of 133,333,333 new ordinary shares via a placing at 4.5p per share to raise £6 million before expenses to provide additional working capital and funding for future capital expenditure and investment.

The CEO of MX Oil plc; Stefan Oliver in a statement said “we are highly pleased and encouraged by the reaction this acquisition deal has received from both existing and new investors, and we are pleased to now have institutions on our register, alongside our historic and supportive retail shareholder base.  Aje, as an investment, ticks all the boxes: compelling economics in the current low oil price environment; a defined development plan in place targeting near term production; considerable exploration upside; located in a prolific hydrocarbon jurisdiction close to existing infrastructure; and acquired at a highly attractive price.  

To have been able to secure this acquisition on these terms is testament to the MX Oil management’s ability to source and secure interests in assets with company-making potential.  We are looking forward to announcing a spud date for our Aje production well in the near term, and are excited by the prospect of bringing this field into production with our new partners and beginning to realize Aje’s excellent potential.

‘This is a game-changing acquisition for MX Oil.  It acceler

ates our transformation into a highly cash generative oil and gas investment company, and it provides a platform from which to fund the development of the conventional onshore concessions we are looking to secure in the Southern American Country of Mexico as part of the on-going Bid Round 1 licensing round.  In Mexico, we have already been granted access to the data room and we are currently carrying out due diligence alongside our local partner Geo on a number of blocks.  Concessions are due to be awarded in Mexico in December 2015, and we remain confident of winning two or more oil-producing blocks. Alongside expected production in Nigeria by January 2016, the next six months promise a great deal of positive news flow which should excite our shareholders, as we look to create a leading oil and gas company.’